Convicted murderer Neddy Smith in near escape from hospital

Corrective Services NSW is investigating allegations that prison officers failed to keep watch over one of the state's most notorious criminals as he received treatment at a Sydney hospital.

Convicted murderer Arthur "Neddy" Smith, now 72, reportedly left his bed at the Prince of Wales Hospital at Randwick on Monday while one officer slept and the other used his laptop.

Nurses discovered him outside his room, the Sunday Telegraph reports, and a Corrective Services NSW spokeswoman confirmed in a statement that a complaint was made about the incident.

"It's alleged the inmate attempted to get out of his bed," the spokeswoman said.

Corrective Services Minister David Elliot said that if the allegation was true, the officers "will have let down the thousands of hard-working correctional staff who put their heart and soul into this demanding job".

Smith, who has Parkinson's disease, is serving time over the murders of brothel owner Harvey Jones and tow-truck driver Ronnie Flavell.